mybusinesscourse.com 0 r11 33': saw v I M6: M30 Problems Ch. 11 3' Return to course 0} Support' :: My Subscriptions 0 Quinn Thornton ' Question 3 Not complete Marked out of 1.00 '7 Flag question Departmental Income Statement Elgin Flooring Company sells floor coverings through two departments, carpeting and hard covering (tile and linoleum). Operating information for 2016 appears below. Carpeting Departm nt Hard Covering Department inventory, January 1, 2016 l $71,000 $37,000 Inventory, December 31,2016 l 39,000 ' 19,000 Net sales i 780,000 480,000 Purchases l 484,000 , 362,000 Purchases returns l 28,000 8,000 Purchases discounts l 16,000 ' 4,000 Transporation in i 13,000 14,000 Traceable departmental expenses l 96,000 , 44,000 Common operating expenses of the firm were $120,000. at Prepare a departmental income statement showing departmental contribution to common expenses and net income of the firm Assume an overall effective income tax rate of 35% Elgin uses a periodic inventory system. Do not use negative signs with any of your answers below. Elgin Flooring Company Departmental Income Statement For the Year Ended December 31,2016 Carpeting Department Hard Covering Department Net sales Cost of goods sold: i i Inventory,January1,2016 l Purchases l Purchases returns l Purchases discounts l Transportation in Cost of goods available for sale Inventory, December 31, 2016 l l Cost of goods sold l Cost of goods sold: ,, , Inventory,January1,2916 Purchases Return [0 COUI'SE mybusinesscourse.oom Purchases returns Purchases discounts Transportation in Cost of goods available for sale Inventory, December 31, 2016 Cost of goods sold Gross Profit Traceable department expenses Contribution to common expenses Common expenses Income before tax Income tax expense Net income b. Calculate the gross profit percentage for each department. Round to the nearest whole percentage. Carpeting department % Hard Covering department % O r 333 I M6: M30 Problems Ch. 11 (3} Support' :: My Subscriptions 0 Quinn Thornton ' c. If the common expenses were allocated 70% to the carpeting department and 30% to the hard covering department, what would the net income be for each department? Do not use negative signs with any of your answers below. Carpeting Department Hard Covering Department Total Contribution to common expenses l 3 $ '3 Common expenses ' ' Income before tax ' ' Income tax expense ' ' Net income ' $ 5 ' $